Gorey retail park sells for €1.33m
Knockmullen Retail Park sale price equates to capital value of €65 per square foot
Knockmullen Retail Park is producing a rent roll of about €139,000 but this could increase if two vacant office units are let.
In February, for example, a majority stake in Navan Shopping Centre was sold to a fund controlled by Davy at a yield of about 9-9.5 per cent. One of the people involved in that transaction said: “Sure, where else in Irish property would you get a return that good right now?”
Knockmullen was put on the market at €1.3 million and its sale price equates to a low capital value of just €65 per square foot. It is producing a rent roll of about €139,000 but this could increase if two vacant office units are let.
The park, built in 2005, extends to about 1,858sq m (20,000sq ft) and includes six retail units and two office units arranged around a good-sized parking area. Its tenant line-up includes Expert Electrical, Sally Salon Services and Bray Vet.
A softening market for provincial retail assets is reflective of the challenges facing traditional retailing from the march of ecommerce.